Method and apparatus for product display

ABSTRACT

Systems and methods are provided for receiving a request to display at least one product. A substitute product for the at least one product is selected from a plurality of substitute products. The selection may be based on, for example, expected revenue from display of the selected substitute product, expected revenue for purchase of the selected substitute product, or a substitution success rate. The selected substitute product is then displayed.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application is a continuation of U.S. patent applicationSer. No. 11/937,743, filed Nov. 9, 2007, entitled “METHOD AND APPARATUSFOR PRODUCT DISPLAY”, which issued as U.S. Pat. No. ______on ______,2011;

which application is a continuation of U.S. patent application Ser. No.10/100,563, filed Mar. 15, 2002, entitled “METHOD AND APPARATUS FORPRODUCT DISPLAY”, issued as U.S. Pat. No. 7,340,419 Mar. 4, 2008; whichclaims the benefit of U.S. Provisional Patent Application No.60/276,193, filed Mar. 15, 2001, entitled SYSTEMS AND METHODS FOREFFECTUATING PROXIMATE PRODUCT PLACEMENT BASED ON PRODUCTSUBSTITUTABILITY.

Each of the above-referenced applications is incorporated by referenceherein in its entirety.

This application is also related to the following U.S. PatentApplications:

U.S. patent application Ser. No. 11/461,250, entitled METHOD ANDAPPARATUS FOR PRODUCT DISPLAY filed Jul. 31, 2006, issued as U.S. Pat.No. 7,835,950 on Nov. 16, 2010;

which is a divisional patent application of U.S. patent application Ser.No. 10/100,563 filed Mar. 15, 2002, entitled METHOD AND APPARATUS FORPRODUCT DISPLAY, which claims the benefit of U.S. Provisional PatentApplication Ser. No. 60/276,193, filed Mar. 15, 2001, entitled SYSTEMSAND METHODS FOR EFFECTUATING PROXIMATE PRODUCT PLACEMENT BASED ONPRODUCT SUBSTITUTABILITY;

U.S. patent application Ser. No. 10/100,684, entitled METHOD ANDAPPARATUS FOR PROMOTING A PRODUCT filed Mar. 15, 2002;

U.S. patent application Ser. No. 10/100,565 entitled PROCESS AND PRODUCTFOR PROMOTING A PRODUCT, filed Mar. 15, 2002;

U.S. patent application Ser. No. 10/100,564 entitled PROCESS AND PRODUCTFOR ENFORCING PURCHASE AGREEMENTS, filed Mar. 15, 2002 and issued asU.S. Pat. No. 6,805,290 on Oct. 19, 2004;

U.S. patent application Ser. No. 09/609,598, entitled SYSTEMS ANDMETHODS WHEREIN A BUYER PURCHASES PRODUCTS IN A PLURALITY OF PRODUCTCATEGORIES, filed Jun. 29, 2000 and issued as U.S. Pat. No. 7,188,080 onMar. 6, 2007;

U.S. patent application Ser. No. 08/889,503, entitled SYSTEMS ANDMETHODS WHEREIN A BUYER PURCHASES A PRODUCT AT A FIRST PRICE ANDACQUIRES THE PRODUCT FROM A MERCHANT THAT OFFERS THE PRODUCT FOR SALE ATA SECOND PRICE, filed Jul. 8, 1997 and issued as U.S. Pat. No. 6,249,772on Jun. 19, 2001;

U.S. patent application Ser. No. 09/591,594, entitled SYSTEMS ANDMETHODS WHEREIN A BUYER PURCHASES A PRODUCT AT A FIRST PRICE ANDPHYSICALLY ACQUIRES THE PRODUCT AT A LOCATION ASSOCIATED WITH A MERCHANTTHAT OFFERS THE PRODUCT FOR SALE AT A SECOND PRICE, filed Jun. 29, 2000and issued as U.S. Pat. No. 7,107,228 on Sep. 12, 2006;

U.S. patent application Ser. No. 09/348,566, entitled SETTLEMENT SYSTEMSAND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCTPURCHASED USING A COMMUNICATION NETWORK, filed Jul. 7, 1999 and issuedas U.S. Pat. No. 7,039,603 on May 2, 2006;

U.S. patent application Ser. No. 09/388,723, entitled REDEMPTION SYSTEMSAND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCTPURCHASED USING A COMMUNICATION NETWORK, filed Sep. 2, 1999 and nowabandoned;

U.S. patent application Ser. No. 09/337,906, entitled PURCHASING SYSTEMSAND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCTPURCHASED USING A COMMUNICATION NETWORK, filed Jun. 22, 1999 and issuedas U.S. Pat. No. 6,754,638 on Jun. 22, 2004;

U.S. patent application Ser. No. 09/370,291, entitled SUPPLEMENTALOFFERS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRIMARYPRODUCT PURCHASED THROUGH A PURCHASING SYSTEM, filed Aug. 9, 1999 andnow abandoned;

U.S. patent application Ser. No. 09/412,930, entitled METHODS ANDAPPARATUS WHEREIN A BUYER ARRANGES TO PURCHASE A FIRST PRODUCT USING ACOMMUNICATION NETWORK AND SUBSEQUENTLY TAKES POSSESSION OF A SUBSTITUTEPRODUCT AT A RETAILER, filed Oct. 5, 1999 and issued as U.S. Pat. No.6,970,837 on Nov. 29, 2005; and

U.S. patent application Ser. No. 09/540,035, entitled RETAIL SYSTEM FORSELLING PRODUCTS BASED ON A FLEXIBLE PRODUCT DESCRIPTION, filed Mar. 31,2000.

The content of each of the above is incorporated by reference herein forall purposes.

BACKGROUND OF THE INVENTION

Customers may be influenced to or prompted to make certain purchasesbased on the viewing of a product, even if that customer did not intenda priori to purchase that product, or did not intend to purchase thatparticular brand of the product. For example, products that aredisplayed at the ends of aisles in supermarkets are typically subject toincreased retail traffic. Accordingly, such products generally receivehigher sales. However, not all products can be displayed in such amanner, due to, e.g., space limitations.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1A is a block diagram of an embodiment of a system consistent withthe present invention;

FIG. 1B is a block diagram of another embodiment of a system consistentwith the present invention;

FIG. 1C is a block diagram of another embodiment of a system consistentwith the present invention;

FIG. 2 is a block diagram of one embodiment of a controller;

FIG. 3 is a table illustrating an exemplary data structure of a customerdatabase;

FIG. 4 is a table illustrating an exemplary data structure of a productdatabase;

FIG. 5 is a table illustrating an exemplary data structure of a productslotting database;

FIG. 6 is a table illustrating an exemplary data structure of an actualtransaction database;

FIG. 7 is a flow diagram illustrating an exemplary process according toan embodiment of the present invention;

DETAILED DESCRIPTION OF THE INVENTION

Applicants have recognized that, in some situations, it can beadvantageous to display products to customers who may be willing topurchase those products.

Applicants have also recognized that, in some situations, it can beadvantageous to display products to customers in exchange for moneyreceived from a seller of that product, such as a manufacturer orwholesaler.

Methods and systems for slotting products into categories based onsubstitutability of the related products and revenue managementtechniques are disclosed. For example, in accordance with an embodimentof the invention, a customer may indicate to the system that thecustomer is interested in purchasing in a general category (e.g. softdrinks). Such a customer may not have a specific brand in mind and maybe willing to purchase from a number of different brands. “Slots” in thesoft drink category may be sold, even slots for products that are nottypically included in the soft drink category. For example, bottledwater may be slotted next to typical carbonated soft drink beverages.The substitute products could be slotted into substitution slots whilethe customer is assembling their basket or in substitution slots thatappear at the time of checkout.

The system may determine which substitute products to slot using a rulesbased system. One possible factor affecting selection of the substituteproduct to display is how much the manufacturer would pay to place theirproduct in the substitute slot. The manufacturer may pay every timetheir product is displayed and/or every time a customer selects theirproduct from the substitute slot. It would be advantageous to place theproduct from the manufacturer who is willing to pay the system the mostfor that slot.

The system must also take into consideration how often the customerselects the product since the manufacturer may be willing to pay everytime the customer purchases their product when it is in the substitutionslot. For example, if an expected rate of substitution is determinable,the expected revenue from substitution may be determined. Consequently,the expected revenue from slotting particular products may bedetermined.

The disclosed systems and methods may benefit manufacturers by allowingthem to build an expanded customer base, by drawing customers from abroader range of comparable products. The disclosed systems and methodsmay also benefit retailers and others that partner with manufacturers tosell products as described herein.

According to an embodiment of the present invention, a product may bepriced by way of receiving, from a customer, information defining one ormore group(s) of comparable products the consumer is willing to purchasefrom, the information further including a price the customer is willingto pay. The buyer-defined price may be provided in exchange forindividual products from within the group, or for the group itself.

For example, the on-line pricing system may transmit a redemption codeto the customer device, entitling the customer to take delivery of oneor more product(s) from a retailer local to the customer.

Upon taking delivery of the previously priced product(s), the customerdevice may communicate information related to the product(s) (e.g. oneor more product identifier(s)) to the applicable retailer system.According to some embodiments of the present invention, rather thanproviding information related to the specific products having been takendelivery of, the customer or customer device may simply provide thepreviously received redemption code to the retailer system.

A detailed discussion of manners in which a redemption code may beassigned, issued and redeemed, as well as other methods related to theprocess of establishing a price for products and then acquiring productsfrom a retailer, is provided in the following:

U.S. patent application Ser. No. 09/609,598, entitled SYSTEMS ANDMETHODS WHEREIN A BUYER PURCHASES PRODUCTS IN A PLURALITY OF PRODUCTCATEGORIES, filed Jun. 29, 2000;

U.S. patent application Ser. No. 08/889,503, entitled SYSTEMS ANDMETHODS WHEREIN A BUYER PURCHASES A PRODUCT AT A FIRST PRICE ANDACQUIRES THE PRODUCT FROM A MERCHANT THAT OFFERS THE PRODUCT FOR SALE ATA SECOND PRICE, filed Jul. 8, 1997 and issued as U.S. Pat. No. 6,249,772on Jun. 19, 2001;

U.S. patent application Ser. No. 09/591,594, entitled SYSTEMS ANDMETHODS WHEREIN A BUYER PURCHASES A PRODUCT AT A FIRST PRICE ANDPHYSICALLY ACQUIRES THE PRODUCT AT A LOCATION ASSOCIATED WITH A MERCHANTTHAT OFFERS THE PRODUCT FOR SALE AT A SECOND PRICE, filed Jun. 29, 2000and issued as U.S. Pat. No. 7,107,228 on Sep. 12, 2006;

U.S. patent application Ser. No. 09/348,566, entitled SETTLEMENT SYSTEMSAND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCTPURCHASED USING A COMMUNICATION NETWORK, filed Jul. 7, 1999 and issuedas U.S. Pat. No. 7,039,603 on May 2, 2006;

U.S. patent application Ser. No. 09/388,723, entitled REDEMPTION SYSTEMSAND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCTPURCHASED USING A COMMUNICATION NETWORK, filed Sep. 2, 1999 and nowabandoned;

U.S. patent application Ser. No. 09/337,906, entitled PURCHASING SYSTEMSAND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCTPURCHASED USING A COMMUNICATION NETWORK, filed Jun. 22, 1999 and issuedas U.S. Pat. No. 6,754,636 on Jun. 22, 2004;

U.S. patent application Ser. No. 09/370,291, entitled SUPPLEMENTALOFFERS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRIMARYPRODUCT PURCHASED THROUGH A PURCHASING SYSTEM, filed Aug. 9, 1999 andnow abandoned;

U.S. patent application Ser. No. 09/412,930, entitled METHODS ANDAPPARATUS WHEREIN A BUYER ARRANGES TO PURCHASE A FIRST PRODUCT USING ACOMMUNICATION NETWORK AND SUBSEQUENTLY TAKES POSSESSION OF A SUBSTITUTEPRODUCT AT A RETAILER, filed Oct. 5, 1999 and issued as U.S. Pat. No.6,970,837 on Nov. 29, 2005; and

U.S. patent application Ser. No. 09/540,035, entitled RETAIL SYSTEM FORSELLING PRODUCTS BASED ON A FLEXIBLE PRODUCT DESCRIPTION, filed Mar. 31,2000.

According to another embodiment of the invention, products may be pricedby way of receiving, from a consumer, information defining one or moretypes or categories of comparable products the consumer is willing topurchase from.

These and other embodiments are described herein.

System

Referring now to FIG. 1, an apparatus 100 according to an embodiment ofthe present invention includes a controller 110 that is in communicationwith one or more retailers 115 via a network such as the Internet (wiredand/or wirelessly), via another network protocol, or via other means forcommunication as would be understood by those of ordinary skill in theart. Although only one retailer 115 is depicted in FIG. 1A, any numberof retailers may be in communication with the controller 110.

The controller 110 also communicates with a customer 105 via a networksuch as the Internet (wired and/or wirelessly), via another networkprotocol, or via other means for communication as would be understood bythose of ordinary skill in the art. Although only one customer 105 isdepicted in FIG. 1A, any number of customers may be in communicationwith the controller 110.

The customer 105 and/or retailer 115 may comprise computers, such asthose based on the Intel® Pentium® processor, that are adapted tocommunicate with the controller 110.

Communication with the controller 110 may be direct or indirect. Forexample, communication may be via the Internet through a Web sitemaintained by controller 110 on a remote server or via an on-line datanetwork including commercial on-line service providers, bulletin boardsystems and the like. In some embodiments, the customer 105 and retailer115 may communicate with controller 110 over radio frequency (“RF”),infrared (“IR”), cable TV, satellite links and the like, includingcombinations thereof.

Those skilled in the art will understand that devices in communicationwith each other need not be continually transmitting to each other. Onthe contrary, such devices need only transmit to each other asnecessary, and may actually refrain from exchanging data most of thetime. For example, a device in communication with another device via theInternet may not transmit data to the other device for weeks at a time.

The controller 110 may function as a “Web server” that generates Webpages (documents on the Web that typically include an HTML file andassociated graphics and script files) that may be accessed via the Weband allows communication with the controller 110 in a manner known inthe art. Those of skill in the art will understand that there are avariety of well-known ways for creating and operating Web pages, andaccordingly a detailed description of such known processes is omittedhere for clarity.

Any or all of the customer 105, the controller 110 and retailer 115 maycomprise, e.g., a conventional personal computer, a portable type ofcomputer, such as a laptop computer, a palm-top computer, a hand-heldcomputer, or a Personal Digital Assistant (PDA), or combinationsthereof.

Referring to FIG. 1B, an apparatus 130 according to an embodiment of thepresent invention includes a controller 140 that is in communicationwith one or more customer terminals 135, one or more manufacturers 142,one or more sponsors 145, and one or more credit card clearing houses152. Communication with each may be via a network such as the Internet(wired and/or wirelessly), via another network protocol, or via othermeans for communication as would be understood by those of ordinaryskill in the art. It is also possible that controller 140 will receiveinformation directly or indirectly from a POS terminal 150, such as acash register (e.g., mechanical or electronic). The POS terminal mayinclude a bar code scanner, keypad, and/or any other input device forreceiving information related to one or more products being acquired.The POS terminal may also comprise or include means for receiving thepreviously assigned redemption code, along with information related tothe specific products having been taken delivery of (e.g. codedinformation such as bar codes, SKUs or other product descriptor(s)).

A customer 105 communicates with the customer terminal 135, which mayinclude a web browser or other known user interface means. The customer105 also communicates with the POS terminal 150. In typical situations,the customer 105 will not communicate with the customer terminal 135 andthe POS terminal 150 simultaneously.

As is known in the art, the credit card clearinghouse 152 communicateswith one or more banks 155 as well as with the one or more POS terminals150 to effectuate the processing of transactions made using a creditcard account. For example, the credit card clearinghouse 152 may receivefrom the POS terminal a request to authorize a purchase for which acredit card account is to be charged for payment. The credit cardclearinghouse 152 in turn responds to the request, typically to eitherauthorize or deny the request. Via communication with the credit cardclearinghouse 152, the controller 140 may likewise effectuate processingof credit card transactions via its communication with the credit cardclearinghouse 152.

The manufacturers 142 can communicate with the controller 140 to, e.g.,communicate desired prices, promotions and other product and pricinginformation to controller. It will be understood by those of ordinaryskill in the art that, in addition to manufacturers, other productsuppliers or sellers such as retailers, wholesalers and the like maycommunicate in a like manner with the controller 140.

The sponsors 145 include merchants willing to provide a benefit to thecontroller, manufacturer, customer, retailer and/or other parties inexchange for, e.g., advertising to the customer, acquisition of thecustomer as a client of the sponsor, other interaction with thecustomer.

Referring to FIG. 1C, an apparatus 160 according to an embodiment of thepresent invention includes a controller 165 that is in communicationwith one or more customer terminals 135, one or more manufacturers 142,one or more sponsors 145, and one or more credit card clearing houses152. Communication with each may be via a network such as the Internet(wired and/or wirelessly), via another network protocol, or via othermeans for communication as would be understood by those of ordinaryskill in the art.

It is also possible that controller 165 will receive informationdirectly or indirectly from a POS terminal 170, via a POS peripheral 175and a peripheral server 180. The POS terminal 170 may be a cash register(e.g., mechanical or electronic). The POS peripheral 175 may be a devicethat receives information from the POS terminal 170, such as a couponprinter of the type manufactured by Catalina Marketing Corporation. Theperipheral server 180 may be in communication with a plurality of suchPOS peripherals, thereby allowing the peripheral server 180 to receiveinformation regarding a plurality of transactions at a plurality ofretailers.

The POS peripheral 175 may be operable to access a database (e.g., ofperipheral server 180) to issue custom coupons, offers, incentives andmessages based upon the transaction. The peripheral server 180 may thusmonitor shopper purchase history over time by associating purchasebehavior with customer identifiers, such as loyalty card or checkcashing card numbers. Further, this information may be analyzed, e.g.,to identify those customers which a particular retailer should find mostdesirable. Based upon retailer objectives, the peripheral server 180 maydirect the appropriate POS peripheral 175 to issue customized messagesto specific shoppers that are relevant to their shopping behaviors.

Information received by the POS peripheral 175 from the POS terminal 170may include transaction data such as products purchased, prices ofproducts purchased, coupons redeemed, and time and date of transaction.

A customer 105 communicates with the customer terminal 135, which mayinclude a web browser or other known user interface means. The customer105 also communicates with the POS terminal 170. In typical situations,the customer 105 will not communicate with the customer terminal 135 andthe POS terminal 150 simultaneously.

As is known in the art, the credit card clearinghouse 152 communicateswith one or more banks 155 as well as with the one or more POS terminals150 to effectuate the processing of transactions made using a creditcard account. For example, the credit card clearinghouse 152 may receivefrom the POS terminal a request to authorize a purchase for which acredit card account is to be charged for payment. The credit cardclearinghouse 152 in turn responds to the request, typically to eitherauthorize or deny the request. Via communication with the credit cardclearinghouse 152, the controller 165 may likewise effectuate processingof credit card transactions via its communication with the credit cardclearinghouse 152.

The manufacturers 142 can communicate with the controller 165 to, e.g.,communicate desired prices, promotions and other product and pricinginformation to controller. It will be understood by those of ordinaryskill in the art that, in addition to manufacturers, other productsuppliers or sellers such as retailers, wholesalers and the like maycommunicate in a like manner with the controller 165.

The sponsors 145 include merchants willing to provide a benefit to thecontroller, manufacturer, customer, retailer and/or other parties inexchange for, e.g., advertising to the customer, acquisition of thecustomer as a client of the sponsor, other interaction with thecustomer.

In addition to the description above, other means for the controller toreceive information regarding a set of products for which a buyer priceis established online, and a corresponding set of products picked up atthe retailer.

Devices

FIG. 2 illustrates an embodiment 200 of a controller. The controller maybe implemented as a system controller, a dedicated hardware circuit, anappropriately programmed general purpose computer, or any otherequivalent electronic, mechanical or electro-mechanical device.

The controller 200 comprises a processor 205, such as one or more Intel®Pentium® processors. As is well known in the art, the processor 205 maybe in communication with a communication port (not shown in FIG. 2) orother means for facilitating communication between the processor 205 andother devices.

The processor 205 is also in communication with a data storage device210. The data storage device 210 comprises an appropriate combination ofmagnetic, optical and/or semiconductor memory, and may include, forexample, Random Access Memory (RAM), Read-Only Memory (ROM), a compactdisc and/or a hard disk. The processor 205 and the storage device 210may each be, for example: (i) located entirely within a single computeror other computing device; or (ii) connected to each other by a remotecommunication medium, such as a serial port cable, telephone line orradio frequency transceiver or other wired or wireless media. In oneembodiment, the controller may comprise one or more computers that areconnected to a remote server computer for maintaining databases.

The data storage device 210 stores a program 215 for controlling theprocessor 205. The processor 205 performs instructions of the program215, and thereby operates in accordance with the embodiments of thepresent invention, and particularly in accordance with the methodsdescribed in detail herein. The program 215 may be stored in acompressed, uncompiled and/or encrypted format. The program 215furthermore includes program elements that may be necessary, such as anoperating system, a database management system and “device drivers” forallowing the processor 205 to interface with computer peripheraldevices. Appropriate program elements are well known to those ofordinary skill in the art, and need not be described in detail herein.

According to an embodiment of the present invention, the instructions ofthe program 215 may be read into a main memory from anothercomputer-readable medium, such from a ROM to RAM. Execution of sequencesof the instructions in program 215 causes processor 205 to perform theprocess steps described herein. In alternative embodiments, hard-wiredcircuitry may be used in place of, or in combination with, softwareinstructions for implementation of the processes of the presentinvention. Thus, embodiments of the present invention are not limited toany specific combination of hardware and software.

The storage device 210 also stores (i) a customer database 220, (ii) aproduct database 225, (iii) a product slotting database 230, and (iv) anactual transaction database 235. The databases are described in detailbelow and depicted with exemplary entries in the accompanying figures.As will be understood by those skilled in the art, the schematicillustrations and accompanying descriptions of the databases presentedherein are exemplary arrangements for stored representations ofinformation. Many other arrangements may be employed besides thosesuggested by the tables shown. Similarly, the illustrated entries of thedatabases represent exemplary information only; those skilled in the artwill understand that the number and content of the entries can bedifferent from those illustrated herein.

Databases

FIG. 3 is a tabular representation of an embodiment 300 of the customerdatabase. The tabular representation of the customer database includes anumber of example records or entries, including the entry 330, each ofwhich defines a customer. Those skilled in the art will understand thatthe customer database may include any number of entries. The tabularrepresentation of customer database also defines fields for each of theentries or records. The fields specify: (i) a customer identifier 305that uniquely identifies the customer; (ii) a customer name 310; (iii)contact information 315 of the customer; and (iv) payment information320 of the customer, such as credit card or debit card accountinformation which may be used to render payment on behalf of thecustomer.

The customer identifier, as well as other identifiers described herein,may be generated or assigned by the controller, or may be established bythe customer and provided to the controller by way of a customerterminal or other appropriate device. For example, the customeridentifier may comprise a numeric code that is assigned to thecorresponding customer by the controller. Alternatively, the customeridentifier may comprise a user name and/or password that may begenerated by a customer terminal and subsequently provided to thecontroller.

The data stored in the contact information field may comprise any of (i)an electronic mail (e-mail) address, (ii) a postal address, (iii)telephone number, and (iv) a numeric IP address of the customer.

FIG. 4 is a tabular representation of an embodiment 400 of the productdatabase. The tabular representation of the product database includes anumber of example records or entries, including the entry 430, each ofwhich defines a product offered for sale. Those skilled in the art willunderstand that the product database may include any number of entries,and that the information stored thereby may be specific to particularretailers. For example, the entry 430 may indicate a product offered forsale by, e.g., only a certain chain of stores, but not by others.Accordingly, the entries may optionally be associated with a retailer orset of retailers.

The tabular representation of product database also defines fields foreach of the entries or records. The fields specify: (i) a productidentifier 405 that uniquely identifies the product, such as an SKU orother appropriate identifier; (ii) a product description 410; and (iii)applicable rebates 415 and 420. Although two applicable rebates areillustrated in FIG. 4, any number of rebates may be used, and the numberof rebates may differ among products in any manner desired.

FIG. 5 is a tabular representation of an embodiment 500 of the productslotting database. The tabular representation of the product slottingdatabase includes a number of example records or entries, including theentries 540 and 545, each of which defines a substitute product, whichmay be displayed when a particular product category is requested to bedisplayed. Those skilled in the art will understand that the productslotting database may include any number of entries.

The tabular representation of product slotting database also definesfields for each of the entries or records. The fields specify: (i) arequested product category 505 that identifies the product or productcategory requested by the customer; (ii) an identifier 510 thatidentifies a substitute product to be displayed; (iii) a payment 515which the manufacturer or other seller has agreed to pay upon display ofthe substitute product; (iv) a payment 520 which the manufacturer orother seller has agreed to pay upon sale to the customer of thesubstitute product; (v) a success rate 525 of such “substitution” of thesubstitute product for another (e.g., requested product or category);and (vi) an expected revenue 530 to be received per substitution, asdetermined by the expected revenue from the combination of display andsubstitution.

An expected revenue per substitution may be calculated according to thefollowing equation:

ERS=Manufacturer Payment per Display of Product+(Manufacturer Paymentper Customer Substitute of Product) * (Substitution Success Rate)

FIG. 6 is a tabular representation of a record 600 of an embodiment ofthe actual transaction database. The actual transaction database wouldtypically contain a plurality of such records, each such record definingan actual transaction of a customer with a retailer. The tabularrepresentation of the record 600 includes a number of example records orentries, including the entries 625 and 630, each of which defines aproduct and corresponding quantity acquired during the transaction.Those skilled in the art will understand that the record may include anynumber of entries. The tabular representation of customer database alsodefines fields for each of the entries or records.

The record further specifies: (i) an acquisition session identifier 605that uniquely identifies the actual transaction; (ii) a date and time610 of the transaction; (iii) a retailer 615 with which the transactionoccurred; and (iv) a pricing session 620 which indicates the proposedtransaction that the actual transaction was purported to correspond to.

Process Description

Referring to FIG. 7, a flow chart 700 represents an embodiment of thepresent invention that may be performed by the controller. Theparticular arrangement of elements in the flow chart of FIG. 7, as wellas the other flow charts discussed herein, is not meant to imply a fixedorder to the steps; embodiments of the present invention can bepracticed in any order that is practicable.

At step 705, the controller receives a product category selection from acustomer, typically via a Web browser at a customer terminal. Forexample, a customer may log on to the controller's Web Site and requestto see products in the “Beverage/Soft Drink” category.

At step 710, the controller determines a substitute product based on (i)the selected product category and optionally (ii) the greatest expectedrevenue per substitution. For example, the controller may access theproduct database and product slotting database to determine, based onthe requested product category and optionally the expected revenue persubstitution, which product to display in the substitute productcategory. In the example above, the customer had requested the“Beverage/Soft Drink” category, so the controller system would determinefrom the product slotting database which products are appropriatesubstitutes for the “Beverage/Soft Drink” Category. The controllersystem would then determine the ERS for each of the products. Theproduct with the greatest ERS may be the appropriate substitute product.

At step 715, the controller retrieves information associated with thedetermined substitute product. For example, the controller may accessinformation including a product description, product identifier, productgraphic, etc.

At step 720, the controller displays the determined substitute productin proximity of products within the selected product category. In oneembodiment, the substitute product is displayed in a constant orsubstantially constant portion of a web page, such as in a particularframe, always to the left of a requested product category, etc.

At step 725, the controller determines whether the customer has selectedthe substitute product for purchase. If so, then at step 730 thecontroller charges, or registers an entry to later charge, themanufacturer for the appropriate fee per display of product plus the feeper customer substitute of product. Then, the controller at step 745updates the substitution success rate for the substitute product. Thesubstitution success rate is typically calculated as the number of timesthe substitute product is displayed in a product category divided by thenumber of times the substitute product is purchased in a productcategory. Other calculations of success rate may be used as desired.

If at step 725 the controller determines that the customer has notselected the substitute product for purchase, then at step 735 thecontroller registers the substitute product as having not been selected.At step 740 the controller charges the manufacturer the appropriate feeper display of product, and at step 745 updates the substitution successrate for the substitute product.

Although the present invention has been described with respect to apreferred embodiment thereof, those skilled in the art will note thatvarious substitutions may be made to those embodiments described hereinwithout departing from the spirit and scope of the present invention.

For example, the controller may dynamically determine which products aresubstitutes for one another based on customer preferences, manufacturerinput, retailer input, retail prices, historical purchases, and othercriteria.

In another embodiment, the substitution slots may appear while thecustomer is checking out (e.g. after the customer has assembled theirshopping cart.) After the customer has assembled their shopping cart,the customer may be presented with an opportunity to switch an “originalproduct” (in the shopping cart) for a substitute product. The customermay optionally receive a benefit for switching to the substituteproduct. Further, the customer may receive an offer (e.g., duringcheckout) prompting him to switch in exchange for a benefit.

The controller may determine which substitute products to offer thecustomer at check-out based on, e.g., the expected revenue describedabove.

1. A method comprising: receiving an indication of a product category;determining, by a controller, a product based on the product category;selecting, by the controller from a plurality of substitute products, asubstitute product for the determined product, in which each substituteproduct of the plurality of substitute products is associated with arespective payment that a respective manufacturer has agreed to pay foreach time the substitute product is purchased, in which selecting thesubstitute product is based on the respective payment; and transmittinga signal to display the selected substitute product.
 2. The method ofclaim 1, in which selecting the substitute product is based on arespective payment for each time the substitute product is displayed andthe respective payment for each time the substitute product ispurchased.
 3. A method comprising: receiving an indication of a productcategory; determining, by a controller, a product based on the productcategory; selecting, by the controller from a plurality of substituteproducts, a substitute product for the determined product, in which eachsubstitute product of the plurality of substitute products is associatedwith a respective substitution success rate, in which selecting thesubstitute product is based on the respective substitution success rate;and transmitting a signal to display the selected substitute product. 4.The method of claim 3, in which selecting the substitute product isbased on a respective payment for each time the substitute product isdisplayed and the respective substitution success rate.